Which of the Following Statements Is True Regarding Ratio Analysis

question 63

Multiple Choice

Which of the following statements is true regarding ratio analysis?

• A) A ratio for a particular company is often compared to industry standards using various publications.
• B) Ratio analysis should be kept as simple as possible, which is often accomplished by using just one ratio to measure a company's performance.
• C) A ratio for a particular company is unique and, therefore, should not be compared to other companies' ratios.
• D) Ratio analysis will not be affected by different accounting methods or assumptions.

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